A report by the National Bureau of Statistics (NBS) has indicated that Lagos, FCT, and Rivers states recorded the highest IGR amounting to N815.86 billion, N211.10 billion, and N195.41 billion respectively in 2023.
While Taraba, Yobe and Kebbi states reported the least revenues with N10.87 billion, N11.19 billion, and N11.74 billion respectively within the period under review.
The NBS made this known yesterday in its document titled: “Internally Generated Revenue At State Level (2023). the report further noted that the Federal Capital Territory (FCT) and the 36 states of the federation generated N2.43 trillion Internally Generated Revenue (IGR) last year. Thus the collection was an indication of 26.03% from the 2022 record of N1.93 trillion.
“The 36 states and the FCT generated a total of N2.43 trillion as Internally Generated Revenue (IGR) in 2023, indicating a growth rate of 26.03% from N1.93 trillion recorded in 2022.”
The report also noted that Pay As You Earn (PAYE) was the most tax revenue recorded during the period (N1.24 trillion), representing 63.83% of the total taxes collected, while capital gains tax was the least with N5.91 billion. Total taxes to total IGR, according to the report, stood at about 80 percent nationally.
NBS said the report highlights the Internally Generated Revenue (IGR) in 2023 for the 36 States and the FCT. “It has two broad categories of revenues: i. Taxes ii. Ministries, Departments and Agencies (MDAs) revenue.
“The taxes include PAYE, direct assessment, road taxes, stamp duties, capital gain tax, Withholding taxes, other taxes, and LGAs revenue.”
Internally generated Revenue (IGR) in Nigeria refers to income sourced within government jurisdictions, crucial for financial sustainability amid volatile oil revenues. IGR reduces dependency on federal allocations, enabling states to fund essential services like healthcare, education, and infrastructure.
It promotes economic diversification by encouraging sectors such as agriculture and SMEs, enhancing public service delivery. Key sources include taxes, fees, and revenue from state-owned enterprises. However, challenges such as poor tax compliance, inadequate infrastructure, corruption, and limited administrative capacity hinder IGR maximization. Addressing these issues is vital for fostering economic growth and improving citizens’ quality of life.
